Dear Sirs:
Re: Subsection 19(1) - Meaning of the Word "Periodical"
This is in reply to your letter of September 10, l991 concerning the interpretation of "periodical" as the term is used in subsection 19(1) of the Income Tax Act (the "Act").
You note that periodical is not a defined term under the Act. The usual dictionary definition refers to a publication that is published on a recurring basis. Statistics Canada, presumably for the purposes of assembling a catalogue of periodicals, defines a periodical as including a publication issued on a regular basis and published more frequently than annually but not published more frequently than weekly. It appears this was not intended to be an all inclusive definition.
You have requested that we confirm that the word "periodical", as used in subsection 19(1) of the Act is a publication issued on a recurring basis more frequently than annually but less frequently than daily.
As you have noted, the word "periodical" has a fairly broad interpretation, when one refers to the various dictionary definitions. The Statistics Canada definition seems to be an example of a modified definition adopted for use within that Department. Nevertheless, we believe most periodicals fall within the definition suggested above. There may be an exceptional case where it is necessary to review all the facts and circumstances.
If there is any doubt in an actual situation, we would be pleased to consider the issue in an advance income tax ruling involving a proposed transaction. Alternatively, an actual case may be discussed with officials of the local District Taxation Office.
DirectorManufacturing Industries, Partnerships and Trusts DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch